Correlation Between Intuit and MondayCom
Can any of the company-specific risk be diversified away by investing in both Intuit and MondayCom at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Intuit and MondayCom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuit Inc and MondayCom, you can compare the effects of market volatilities on Intuit and MondayCom and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Intuit with a short position of MondayCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuit and MondayCom.
Diversification Opportunities for Intuit and MondayCom
Weak diversification
The 3 months correlation between Intuit and MondayCom is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Intuit Inc and MondayCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MondayCom and Intuit is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Intuit Inc are associated (or correlated) with MondayCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MondayCom has no effect on the direction of Intuit i.e., Intuit and MondayCom go up and down completely randomly.
Pair Corralation between Intuit and MondayCom
Given the investment horizon of 90 days Intuit is expected to generate 1.74 times less return on investment than MondayCom. But when comparing it to its historical volatility, Intuit Inc is 1.88 times less risky than MondayCom. It trades about 0.06 of its potential returns per unit of risk. MondayCom is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 14,740 in MondayCom on November 9, 2024 and sell it today you would earn a total of 11,793 from holding MondayCom or generate 80.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intuit Inc vs. MondayCom
Performance |
| Timeline |
| Intuit Inc |
| MondayCom |
Intuit and MondayCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuit and MondayCom
The main advantage of trading using opposite Intuit and MondayCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuit position performs unexpectedly, MondayCom can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in MondayCom will offset losses from the drop in MondayCom's long position.The idea behind Intuit Inc and MondayCom pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| MondayCom vs. Datadog | MondayCom vs. Gitlab Inc | MondayCom vs. ZoomInfo Technologies | MondayCom vs. HubSpot |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |